We've done things to demonstrate that companies the size of Cadence can persist and grow.” The financial stability that companies like Cadence offers, being globally diverse, those are things that are very difficult to do in the current environment. Mike Fisher, CEO of Cadence, in interview with Electronic News on Future of EDA, said “As a customer of EDA, it's very difficult to bet your next product cycles on very, very small companies, especially when you are ramping microprocessors, and that was my life. The emerging companies are indistinguishable from one another. In DAC 2006 at the Dataquest event, it was indicated that in EDA there are 3 big water buffalo at the head, which stand shoulder to shoulder at the watering hole while everyone else waits in line. This shows that the EDA companies have been able to sustain their market share through merger and acquisitions. Non-acquisition/Core revenue of these companies in 2005 was 78% of the 1998 level. The Figure 2 shows what revenues from core and acquisitions of the Big Three. These big companies have been able to sustain the Market share because of “Merger and Acquisitions”.

They have about 75% percent of market share and about 90% of EDA revenue.

(Of course, the possibility always remains that one or more of the remaining could become acquisition candidates for the Big Three as well).ĮDA industry always has had Three Large Companies, as shown in Table 1įrom 1993, “BIG THREE” EDA companies are Cadence Design Systems, Synopsys and Mentor Graphics. Not infrequently, some of these smaller companies partner with one or more of the Big Three ( Cadence, Mentor, Synopsys) to provide end-customers with broader solution suites. Combined, they generate the remaining 10 percent of the revenue. The Big Three have 75% of the market share.Īltium, Ansoft, Magma, and Synplicity - offer specialized software/services products in specific EDA niches. Three of these EDA companies ( Cadence, Mentor Graphics, and Synopsys) represent a dominant 90 percent of the total revenue in this grouping, and each of these three companies offers a wide array of software products and services. Since 2001 there has been no IPOs in EDA.įigure 1 shows the EDA companies' revenue share as per 2005 revenue. In 1999 there were about 80 startups in EDA. There are around 300 EDA companies plus many more niche & regional companies. In DAC 2005 there were around 184 exhibitors. Gartner/Dataquest publishes information on 82 EDA companies. Will that continue? Yes it seems so.ĮDA is $4574 million dollar industry. EDA historically has been innovating through merger and acquisitions to gain other companies' technologies.

Synopsys acquisitions